Core Viewpoint - Huaxia Bank has not implemented its share buyback plan due to the information disclosure window period and fluctuations in the secondary market, despite the management's confidence in the bank's long-term investment value [2]. Group 1: Share Buyback Plan - Huaxia Bank announced that the implementation period for its share buyback plan has passed the halfway mark, but the plan has not been executed due to various factors [2]. - The bank's management expressed confidence in the bank's future development and plans to opportunistically increase their holdings during the remaining period of the buyback plan [2]. - The buyback plan was initially announced on April 10, with executives and key personnel planning to invest at least RMB 30 million over a six-month period starting from April 11, 2025 [2]. Group 2: Stock Performance - Huaxia Bank's stock price has shown an upward trend this year, rising from a low of RMB 7.17 per share on April 30 to RMB 8.58 per share as of July 10, representing an 18.06% increase [2]. - The bank's total market capitalization reached RMB 136.5 billion as of July 10 [3]. Group 3: Financial Performance - As of the end of the first quarter, Huaxia Bank reported total assets of RMB 45,211.99 billion, a year-on-year increase of 3.31% [3]. - The bank's operating income for the same period was RMB 18.194 billion, reflecting a year-on-year decline of 17.73% [3]. - The net profit attributable to shareholders was RMB 5.063 billion, down 14.04% year-on-year [3]. Group 4: Industry Context - Huaxia Bank is not the only bank to delay its share buyback plan this year; Chengdu Bank also announced a similar situation due to its stock price exceeding the buyback price limit [4]. - Chengdu Bank's major shareholders have not executed their buyback plan, which was initially set to acquire between 39.7944 million and 79.5887 million shares [4]. - The recent trend of banks postponing buyback plans may indicate a shift in market dynamics, as rising stock prices could diminish the attractiveness of such investments [5].

Core Viewpoint - Huaxia Bank has not implemented its share buyback plan due to the information disclosure window period and fluctuations in the secondary market, despite the management's confidence in the bank's long-term investment value [2][4]. Group 1: Share Buyback Plan - On July 10, Huaxia Bank announced that its share buyback plan has not been executed as the implementation period has passed halfway, influenced by the information disclosure window and market volatility [2]. - The bank's management expressed confidence in the future development prospects and plans to opportunistically increase their holdings during the remaining period of the buyback plan [2]. - The buyback plan was initially announced on April 10, with executives and key personnel intending to invest at least RMB 30 million over a six-month period starting from April 11, 2025 [2]. Group 2: Stock Performance - Huaxia Bank's stock price has shown an upward trend this year, starting from a low of RMB 7.17 per share on April 30, leading to a significant increase [3]. - As of July 10, the stock price reached RMB 8.58 per share, resulting in a total market capitalization of RMB 136.5 billion, reflecting an 18.06% increase since April 10 [4]. Group 3: Financial Performance - Despite the positive stock performance, Huaxia Bank's financial results for the first quarter indicate some pressure, with total assets amounting to RMB 45,211.99 million, a 3.31% increase from the end of the previous year [4]. - The bank reported operating revenue of RMB 18.194 billion, a year-on-year decrease of 17.73%, and a net profit attributable to shareholders of RMB 5.063 billion, down 14.04% year-on-year [4]. Group 4: Industry Context - Huaxia Bank is not the only bank to delay its buyback plan this year; Chengdu Bank also announced a similar situation due to its stock price exceeding the buyback price limit [5]. - The recent trend of bank executives and shareholders postponing buyback plans may indicate a decrease in the attractiveness of the current valuations, raising concerns about potential market shifts [5].

Core Viewpoint - The banking sector in China is experiencing a notable increase in internal capital increases, reflecting growing confidence in the long-term value of banks as both executives and major shareholders actively participate in stock buybacks [1][2][3]. Group 1: Executive and Shareholder Actions - Several banks, including Huaxia Bank and Jiangsu Bank, have initiated or completed stock buyback plans, indicating a trend where bank executives and major shareholders are taking proactive steps to invest in their own companies [1][2]. - Huaxia Bank announced a voluntary buyback plan of at least 30 million yuan, although its implementation has been delayed due to market conditions [1][2]. - Jiangsu Bank's executives completed their buyback plan ahead of schedule, investing 24.28 million yuan, which is 121.39% of the planned minimum amount [1][2]. Group 2: Broader Industry Trends - Over ten banks, including Suzhou Bank and Chengdu Bank, have disclosed similar buyback plans in 2023, suggesting a widespread trend within the banking industry [1][2]. - The actions of bank executives and shareholders are interpreted as a signal of confidence in the banks' future performance and stock prices, as they are willing to invest their own funds and bear market risks [2][3]. Group 3: Market Reactions and Valuation - The stock buyback announcements have provided short-term support for stock prices, with Jiangsu Bank's stock rising by 0.74% following its announcement [5]. - The average price-to-book (PB) ratio for A-share banks is currently at 0.6, with some city commercial banks below 0.5, indicating that the banking sector is undervalued [5]. - The average dividend yield for the banking sector is 3.86%, making it attractive for long-term investors, especially in light of regulatory measures encouraging long-term capital inflows [4]. Group 4: Long-term Challenges - Despite the positive signals from buybacks, the banking sector faces deeper challenges, including narrowing net interest margins and asset quality issues that have not been fundamentally resolved [5][6]. - The effectiveness of buybacks in stabilizing stock prices may be limited if they do not coincide with improvements in operational efficiency and fundamental performance [5][6].

Core Viewpoint - The convertible bond market is experiencing a significant reduction in supply, leading to increased scarcity and heightened interest from investors, particularly in bank convertible bonds [1][2][3]. Group 1: Market Dynamics - Since July, there has been a concentrated redemption and conversion of bank convertible bonds, resulting in a shrinking asset pool. As of July 10, the total market for convertible bonds has decreased to 668.08 billion yuan, down 65.54 billion yuan from the beginning of the year [1]. - The current market is undergoing a period of intensive adjustment, with 456 convertible bonds entering redemption and conversion phases, representing 95.36% of the total market size [1]. - The convertible bond market has shown strong upward momentum this year, with the Wind convertible bond index rising by 18.17% year-to-date as of July 10 [2]. Group 2: Performance of Bank Convertible Bonds - Bank convertible bonds are particularly attractive due to the strong credit quality of the issuing banks and the performance of bank stocks, which have seen significant increases due to institutional investments [2][3]. - Several bank convertible bonds have successfully triggered mandatory redemption and conversion, achieving high conversion rates, such as Chengdu Bank and Suzhou Bank with rates of 99.94% and 99.93% respectively [3]. Group 3: Investor Sentiment and Strategy - There is a growing concern among investors regarding the high valuation of convertible bonds, with some analysts suggesting that entering the market at this stage may not be wise [2][4]. - Despite the high valuations, there remains a demand for convertible bonds, particularly from institutional investors seeking to enhance their fixed-income portfolios [5][6]. - Investment strategies are shifting, with a preference for large-cap convertible bonds linked to major stocks, especially in sectors like banking, photovoltaic, and agriculture [6].

Core Viewpoint - The banking sector has shown strong performance in 2023, with a cumulative increase of 20.54% in the banking index and nearly 20 bank stocks reaching new highs this year [1] Group 1: Convertible Bonds - There has been a notable surge in the redemption of bank convertible bonds, with two bonds officially delisted from the capital market this month [2] - Nanjing Bank's convertible bond is set to be redeemed and delisted on July 18, following a period where its closing price exceeded the conversion price threshold [3] - Hangzhou Bank's convertible bond completed its market-based conversion and delisting, strengthening its core tier one capital [4] - Several bank convertible bonds have completed conversion and delisting this year, with conversion rates for Chengyin and Suhang bonds reaching 99.94% and 99.93% respectively [5] - Qilu Bank's convertible bond is also approaching delisting, having triggered redemption clauses due to its stock price exceeding the conversion price threshold [5] Group 2: Shareholder Actions - Chengdu Bank's controlling shareholders have not executed their planned share buyback, as the stock price has consistently exceeded the buyback price limit [6][7] - The buyback plan was announced on April 9, with a price cap set at 17.59 yuan per share, but the stock price surpassed this limit shortly after the announcement [8][9] - Chengdu Bank indicated that the controlling shareholders will continue to monitor stock price fluctuations and market trends to determine the timing of their buyback [10]

Investment Rating - The industry investment rating is "Outperform the Market" [1][49]. Core Viewpoints - The report highlights a profound change in the funding structure, emphasizing a shift towards reallocation rather than trading. The changes in fund flows are crucial for the valuation recovery of the sector, with stable inflows driven by the continuous expansion of passive indices. The banking sector's characteristics of low volatility and high dividends make it attractive to long-term funds, with an average dividend yield of 3.86%. Regulatory measures aimed at guiding long-term funds into the market are expected to sustain the attractiveness of dividend allocation [3][16]. Summary by Sections Industry Investment Rating - The banking industry is rated as "Outperform the Market," indicating an expected performance that exceeds the market by more than 5% over the next six months [1][49]. Core Industry Insights - The report notes that the changes in fund flows are a significant force driving the valuation recovery of the banking sector. The continuous expansion of passive indices has led to stable fund inflows, and the sector's high dividend yield is appealing to long-term investors, particularly insurance funds. The average dividend yield in the sector is currently at 3.86% [3][16]. - The report expresses optimism about the A-share banking sector and certain high-quality regional banks (Chengdu, Beijing, Jiangsu, Shanghai, Suzhou, Changsha) based on dividend and potential long-term fund inflow considerations. It also highlights opportunities in Hong Kong's major banks with better dividend advantages [3][16]. Market Trends - In June 2025, the banking sector rose by 6.13%, outperforming the CSI 300 index by 3.63 percentage points, ranking 11th among 30 sectors in the CITIC index [25][19]. - The report tracks the trend of long-term funds flowing into the banking sector, with insurance funds increasing their allocation. Since 2024, the pace of insurance fund allocation has slightly increased, with 23 A-share listed banks having insurance funds among their top ten shareholders [4][8]. Macro and Liquidity Tracking - The report provides macroeconomic indicators, noting that the manufacturing PMI for June was 49.70%, with a slight month-on-month increase. The one-year and five-year LPR remained stable at 3.0% and 3.50%, respectively [27][38]. - In terms of credit, new RMB loans increased by 620 billion yuan in May 2025, with a year-on-year growth rate of 7.10%. The total social financing scale increased by 2.29 trillion yuan, with a year-on-year growth rate of 8.70% [39][42]. Individual Stock Valuation - The report includes a valuation table for individual banks, highlighting strong recommendations for several banks based on their expected performance and valuation metrics. For instance, Chengdu Bank and Suzhou Bank are rated as "Strong Buy" with projected PB ratios below 1.0 [45].

Summary of Key Points Core Viewpoint - Chengdu Bank's actual controller, Chengdu State-owned Assets Supervision and Administration Commission, plans to increase its stake through two subsidiaries, but the implementation has been delayed due to stock price exceeding the set limit [1][2][3]. Group 1: Shareholding Increase Plan - Chengdu Bank's actual controller, Chengdu State-owned Assets Supervision and Administration Commission, through Chengdu Industrial Capital Holding Group and Chengdu Xintianyi Investment, plans to increase its shareholding starting from April 9, 2025, for a period of six months [1][3]. - The maximum purchase price is set at 17.59 yuan per share, which is the historical highest price after the ex-dividend date [1][3]. - The total number of shares to be acquired is capped at 79,588,706 shares, representing no more than 1.878% of Chengdu Bank's total shares [1][3]. Group 2: Implementation Progress - As of the announcement date, the time frame for the shareholding increase plan is over half completed, but no shares have been purchased due to the stock price consistently exceeding the upper limit [1][3]. - The two entities will continue to monitor stock price fluctuations and market trends to determine the timing for the share purchase [1][3]. Group 3: Shareholding Background - Prior to this announcement, Chengdu Industrial Capital Group and Chengdu Xintianyi held a combined total of 1,272,731,998 shares, accounting for 30.03% of Chengdu Bank's total shares [2][3]. - In the twelve months preceding this announcement, the two entities had increased their holdings by 5,180,000 shares, which is 0.13% of the total shares as of December 10, 2024 [2][3]. Group 4: Regulatory Compliance - The shareholding increase plan complies with relevant laws and regulations, including the Securities Law and the Shanghai Stock Exchange listing rules [4]. - During the implementation of this plan, the Chengdu State-owned Assets Supervision and Administration Commission has committed not to reduce its holdings in Chengdu Bank [4].

证券代码：601838 证券简称：成都银行 公告编号：2025-038 成都银行股份有限公司 关于实际控制人控制的股东增持计划进展公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、 误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承 担法律责任。 重要内容提示： 已披露增持计划情况： 成都银行股份有限公司（以下简称"成都银行"）于 2025 年 4 月 9 日披露了《成都银行股份有限公司关于实际控制人控制的股东增持 计划公告》，成都银行实际控制人成都市国有资产监督管理委员会（以 下简称"成都市国资委"）实际控制的企业成都产业资本控股集团有 限公司（以下简称"成都产业资本集团"）、成都欣天颐投资有限责任 公司（以下简称"成都欣天颐"），拟自 2025 年 4 月 9 日起 6 个月内， 通过上海证券交易所系统以集中竞价等合法合规方式增持成都银行 A 股普通股股份。增持价格不超过截至增持计划公告披露日成都银行 除权除息后的历史最高股价 17.59 元/股，在上述增持价格上限范围内， 两家增持主体拟增持的股份数量合计不超过 79,588,706 股，占成都银 行股份总数（4,238,435,3 ...

Industry Investment Rating - The industry investment rating is maintained at "Outperform" [1] Core Insights - The report discusses the impact of deposit rate adjustments on banks, indicating that the adjustments have a limited impact on financial outflows [4][7] - The establishment of a market-oriented deposit rate adjustment mechanism aims to align deposit rates with market rates, thereby reducing banks' funding costs and facilitating lower loan rates [14][17] - The report highlights a significant shift in deposit structures due to regulatory changes, with a notable migration of deposits from large banks to smaller banks and non-bank financial institutions [6][37] Summary by Sections 1. Reasons for Deposit Rate Adjustments - The adjustments are aimed at promoting interest rate marketization and improving policy transmission, breaking the rigid link between deposit rates and benchmark rates [4][14] - The adjustments are expected to lower banks' funding costs, which constitute over 70% of their liabilities, thereby creating room for loan rate reductions [17][18] 2. Review of Past Adjustments - Historical adjustments include the reduction of structured deposits from CNY 15.4 trillion to zero between 2019 and 2020, and the optimization of deposit rate ceilings in June 2021 [5][22] - The establishment of a market-oriented adjustment mechanism in April 2022 has led to multiple rounds of deposit rate reductions, with long-term deposit rates decreasing more than short-term rates [23][24] 3. Market Impact Review - The report notes that during the initial adjustment phases, there was a significant outflow of structured deposits to wealth management and insurance products [6][37] - The adjustments have generally resulted in a shift of deposits from large banks to smaller banks, as well as a migration towards wealth management and insurance products [6][37] 4. Future Outlook and Investment Recommendations - The report anticipates a significant volume of maturing fixed-term deposits in the third quarter, with potential outflows to non-bank institutions [7] - It suggests focusing on banks that may benefit from reduced funding costs and improved net interest margins, highlighting specific banks such as Bank of Communications and Chongqing Bank as potential investment targets [7]

Core Viewpoint - The establishment of Chengdu Bank's Ya'an branch marks the first transformation of a village bank into an urban commercial bank branch in Sichuan, aimed at enhancing inclusive financial services and supporting regional economic development through strategic integration with local resources and national initiatives [1][4]. Group 1: Establishment and Purpose - Chengdu Bank's Ya'an branch officially opened on July 8, 2023, after a year-long restructuring process from the original Mingshan Jincheng Village Bank [4]. - The new branch will focus on bridging the financial service gap in rural areas and leverage opportunities from the Sichuan-Tibet Railway and the Sichuan-Tibet Economic Cooperation Experimental Zone [1][3]. Group 2: Strategic Integration and Development - The branch aims to integrate local resources and national strategies, enhancing its role as a "financial main force" in supporting the local economy [5][7]. - The transformation from a village bank to a branch of Chengdu Bank allows for greater business permissions, improved service capabilities, and a broader operational scope [5][6]. Group 3: Economic and Environmental Focus - Ya'an is rich in natural resources, with a forest coverage rate exceeding 69%, and is positioned as a key area for green development and ecological tourism [7]. - The branch will support core industries such as big data, advanced materials, and high-end equipment manufacturing, while also promoting clean energy and environmental sustainability [8]. Group 4: Financial Products and Services - The branch will implement inclusive financial products like "Tianfu Industry Loan" and "Huiqi Loan" to better serve small and micro enterprises, simplifying approval processes and lowering barriers [8]. - Chengdu Bank's digital transformation initiatives will enhance the operational efficiency and risk management capabilities of the Ya'an branch, providing a more accessible and user-friendly banking experience [8].